Like example of Home Depot and Lowe‘s lumberyard store.I mean I know it‘s different depending on what the goods they are selling. Like few example:1. Construction tools (hummer/saw/nails)2. drywall (sheet and mud)3. lumbers and plywood/OSB such as (2x4x8) or Treated lumber for deck4. Roofing materials (shingles)5. Cabinets for kitchen/bathroom6. Pipes such as for water copper and drain plastic pipe.7. Heating/cooling Unit Machine8. Appliance such as laundry, microwave, ovens etc.9. Electric such as fans with light.10. Flooring (tiles,carpets, hardwood)11. Windows and doorsThose are example, What mark up does most lumberyard sell for from invoice from each of those listed? I am just get an idea what a big home builder such as Ryan Homes buy it directly from factory instead of retail.
Like you said, it depends on what product you're talking about, and the availability of the product regionally. For example, Redwood in the East now has a higher mark up than it does in the West. In the West it's readily available, in the East it's hard to find, so the mark up has to cover extra expense of spending time to find suitable products. Most of the metals, copper pipe, aluminum ducting, wiring, mostly has to do with the market price of the metal. Some items, such as tools, new flooring.etc have a price limit set by the manufacturer. So no matter who you are the deal only gets so good. Big Home Builders save money in two ways. First they can often buy in quantities which allow them to buy directly from manufacturers. If they need 2x4x8 framing, and they're building 10 houses, they can buy a tractor trailer load, or train car for the same amount, or close, to what a retailer would pay for it. The other way they save money is by buying in bulk from retailers. Say an 8' decking board costs $7. If their contractor price is $6.80 it's only 20 cents a board, but if they buy 5,000 boards they save $1000. If you build a 20' wide deck you save $8.40. Also, if there is a lower quality product, like going from a premium decking board to a #2, the homeowner won't save much, but spread it over a large number of homes and it adds up. If a premium board is $7 and a #2 board is $6.25, you save about $31.50 on your deck. Not worth using a lower quality board. For a large builder buying 5,000 boards, they would save $3,750, which makes using a lower quality board more appealling. Hope this helps, Alan
